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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

VZCZCXYZ0000
RR RUEHWEB

DE RUEHBM #0854/01 3561330
ZNR UUUUU ZZH
R 221330Z DEC 09
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC 0195
INFO RUEHKB/AMEMBASSY BAKU 0048
RUEHTV/AMEMBASSY TEL AVIV 2252
RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS BUCHAREST 000854

SENSITIVE, SIPDIS

STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC AJ RO
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050201153

REF.: STATE 120913

Sensitive But Unclassified; not for Internet distribution.

1. (U) This message is a response to reftel inquiry regarding
End-Use Check on Application 050201153 and the bona fides of Foreign
Consignee Aerostar S.A.

2. (SBU) Reporting Officer (RO) raised subject companies with
Romanian authorities, including with the National Export Control
Agency (ANCEX) of the Ministry of Foreign Affairs that has primary
government oversight for licensing imports and exports of U.S.
Munitions List (USML) items. ANCEX is familiar with the company,
and Aerostar is authorized for the importation and exportation of
the military goods. RO also discussed the company's reliability as
a recipient of USML items with Laurentiu Pascal, Director Commercial
& Logistics at Aerostar, by telephone and e-mail. A site visit was
not conducted.

3. (SBU) Aerostar would like to clarify that, while the serial
number is correct, they are in possession of an IFF Interrogator
type Model 57, not a Model 57 IFF Transponder. This equipment is
the property of Elbit Systems and has only been loaned to Aerostar
for their use in the production of equipment to be used to upgrade
Azerbaijani Air Force ground radar systems.

4. (SBU) The following responds to questions raised in reftel
on Application 050201153:

Q: Does this company serve as a broker of USML articles with any
countries besides Romania and Azerbaijan? If so, where? If the
company has offices abroad, where are they located?

A: Aerostar does not routinely serve as a broker of USML articles
for any country other than Romania. The company does not have
offices abroad; it is located only in Romania.

Q: Has this company ever used any other names?

A: The Company has used the names URA (Uzina de Reparatii Avioane-
Aircraft Repair Plant), IRAv (Intreprinderea de Reparatii Avioane -
Aircraft Repair Enterprise), IAv (Intreprinderea de Avioane -
Aircraft Enterprise), and since 1991, AEROSTAR S.A.

Q: How long has the company been in the business of importing and
selling defense articles?

A: The company began as an organ of the Communist Romanian Socialist
Republic in 1953. It has always been involved in the production of
defense articles and in aircraft repair.

Q: What other products are sold by this company?

A: Aerostar is involved in the maintenance, repair, overhaul and
upgrade of civil and military aircraft and aero engines; the design
and manufacturing of light and sport airplanes and of subassemblies
for aircraft construction; ground defense integration (including the
manufacture of brigade/battalion/battery command posts, artillery
forward observer (reconnaissance post), upper air sounding station
and logistic vehicles); avionics and electronics systems
integration; chemical and electrochemical coatings; painting and
heat treatments; civil applications of jet engines such as thermal
decontamination or fire fighting in oil industry; and the production
of liquefied petroleum gas cylinders.

Q: How long has this company been involved in business operations
with the Government of Azerbaijan; do you have a regular business
relationship with Azerbaijan?

A: Aerostar has not previously had regular business with the
Government of Azerbaijan.

Q: Does the company have proper supporting documentation from the
Azerbaijan MOD for the proposed transaction?

A: Elbit, Aerostar and Azerbaijani Air Force signed an EUC that was
delivered to Raytheon, and included a temporary transaction for one
Model 57 IFF to Aerostar for integration purposes with the ground
IFF system at Aerostar facilities. Aerostar also received a TAA
from Raytheon through Elbit.

Q: Does the company understand the restrictions against the
unauthorized re-export or retransfer of U.S.-origin defense

articles?

A: Aerostar understands the restrictions against the unauthorized
re-export or retransfer of U.S.-origin defense articles.

5. (U) This report concludes the pre-license check on application
050120369. Blue Lantern POC is Political Military Officer Timothy
Peltier. Contact information: 40 (21) 200-3425;
PeltierTE@state.gov (unclass);
PeltierTE@state.sgov.gov (class).

GITENSTEIN

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